Snap Inc. (NYSE: SNAP) shares touched an all-time high of $79.18 after announcing impressive financial results for the second quarter. The results were mainly driven by solid revenue growth, strength in advertisement revenue, and a favourable operating environment.
The owner of the photo-messaging app Snapchat reported a loss of 10 cents per share for Q2 ending June 30, managing a smaller loss than the 23 cents per share a year prior. On the bright side, Snap surprised investors by reporting a profit of 10 cents per share on an adjusted basis, compared to an adjusted loss of 9 cents per share for the same period in 2020.
Total revenue for the quarter skyrocketed 116 per cent on a year-over-year basis to $982 million. The results easily exceeded analysts' average estimate of 1 cent per share for adjusted loss and $845.6 million for revenue.
In addition, the social-media company's daily active users (DAUs) in the quarter increased by 13 million on a sequential basis, well ahead of 10 million net additions estimated by analysts. With the latest update, Snap's total DAUs now stands at 293 million.
Chief executive officer Evan Spiegel expressed his satisfaction with the quarterly performance. Spiegel said in a statement, "Our second quarter results reflect the broad-based strength of our business, as we grew both revenue and daily active users at the highest rates we have achieved in the past four years."
Moreover, Snap also issued its sales outlook for its third quarter. It expects revenue in the range of $1.070 billion to $1.085 billion for the current quarter, translating to a year-over-year surge of 58 to 60 per cent. The outlook is above the consensus forecast of $1.014 billion.
Snap stock climbed 23.82 per cent to $77.97 in the previous trading session following its solid quarterly results. Its share price is now up more than 55 per cent on a year-to-date basis, including Friday's gain. The 52-week range of the stock is $20.61-$79.18, while its market value has just topped $123 billion.